Innovation at Work

(Editor’s note — Processors we contacted for this article
declined to participate due to proprietary concerns. Our thanks to DMI for
providing a broad view of current dairy innovation work.)

To drive innovation among
processors and food and beverage manufacturers, Rosemont, Ill.-based Dairy
Management Inc. (DMI) is partnering with industry leaders and innovators to
identify opportunities for dairy and dairy-based products that answer unmet
consumer demand — the gap between current sales and potential sales.

That gap, according to DMI, is about 8 billion pounds
of unmet demand for dairy products that are currently not available to
consumers.

Through proprietary consumer and market research and
third-party analysis, DMI offers insights for product development.
“This research helps quantify the opportunities for milk and
dairy-based products, and we share those insights with industry,”
says Dr. Greg Miller, executive vice president of science and innovation
for DMI/National Dairy Council. “One example is an in-depth consumer
segmentation study recently completed that showed consumers are open to
value-added milk — milk with new flavors, extra nutrients, in
on-the-go packages or with new purposes, such as indulgence, that address
people’s lifestyle. This research showed that 62 percent of the time
people want a beverage.”

The research supports the considerable processor
activity in value-added milk, says Miller. “A good example of this is
Calorie Countdown from HP Hood, which is a DMI partner,” he says.
“This product line offers a rich and creamy dairy beverage that
provides the nutrition of milk, but with fewer calories and
carbohydrates.

Others include Mootopia, a microfiltered product that’s lactose free and has
a higher concentration of milk protein, and Y.U.M., Your Ultimate Milk, a
fat-free milk with plant sterols aimed at reducing cholesterol. The
Slammers® line from Bravo! Foods is bringing more flavors to the table and
targeting different products at different ages of kids and teens. Yoplait® Nouriche® is a
complete meal replacement in a beverage.”

Innovation today is also being driven, in large part,
by obesity concerns, Miller says. “The obesity epidemic has created a
market environment focused on health and wellness. In response, processors
today are launching new health and wellness products to respond to consumer
needs,” he says. “The 3-A-Day of Dairy program, which promotes consumption of three
servings of milk, cheese or yogurt a day, are health positions that can
increase sales of these products in the marketplace.”

Miller says dairy manufacturers need to take advantage
of the natural rich set of nutrients that milk-based foods deliver, and to
actively market and leverage their health benefits. “We direct
nutrition research to guide product positioning, and we fund product and
ingredient research to provide new product science and technologies,”
he says. “We also have a calcium crisis among children today. Many
youngsters lack the calcium they need in their diets, and dairy processors
are responding by adding more calcium to milk to ensure that kids are
consuming the recommended daily value.”

Some are fortifying products with milk solids to
increase protein and calcium, such as Skim Deluxe from Crowley and
Special Request Skim Plus® from Farmland Dairies. Others are fortifying with added
calcium and vitamin D. For instance, Shamrock Farms has a fat-free product
called “mmmilk” with 66 percent more calcium than whole milk.

Omega-3 fatty acids are showing up in dairy foods as
well. “For instance, milk products from Omega Farms supply 75
milligrams of omega-3s in one serving. These beverages come in different
varieties including a chocolate reduced-fat version,” Miller
says.

Yogurt is a great success story for the dairy
industry, Miller says. “Yogurt makers have taken a consumer-driven
approach to delivering the flavors and packaging innovation consumers want,
while also promoting the health benefits that dairy provides,” he
says. “Products are aimed at all demographics — from the yogurt
in tubes for children to daily dose-type products and indulgent yogurts for
adults. Some examples include Dannon Activia®, which is promoted as aiding regularity and is doing very
well in the marketplace. And the ‘ProBugs’ line by Lifeway
Foods offers drinkable yogurts for kids with 10 live and active probiotic
cultures.”

Cheesemakers also are creating different products that
respond to consumer needs, such as Hispanic and flavored cheeses. “If
we think back several years, shredded cheese was a major product innovation
that has proven extremely successful in the marketplace,” Miller
says.

Today, companies such as Sargento have extended this
innovation by offering flavored shredded cheeses such as Bistro Blends and
Mozzarella with Sun Dried Tomato & Basil.” Yet another example is
Kraft Natural Cheese Crumbles, often tossed in salad, and Kraft Cheese
Cubes, bite-sized for snacking.

“The industry has already come a long way in
creating reduced-fat and fat-free cheeses, and this will continue to be an
area of emphasis for DMI research,” he says.

Innovation is all about delivering the right benefit
in the right package at the right time. “That’s why DMI is
partnering with industry leaders to help them get the information and
expertise they need to deliver exactly what consumers want,” Miller
says, “when and where they want it.”

A Combined Effort

Miller says DMI is evolving from a generic promotions
organization to a strategic partnership organization that helps promote and
protect dairy through product and ingredient innovation to meet unmet
demand. “We are transforming ourselves to drive innovation through
partnerships with leading dairy, food and beverage manufacturers,” he
says. “Our knowledge of consumers and our expertise in such areas as
nutrition claims, product research and dairy applications let us
collaborate at all levels to bring new products to market.”

DMI is actively working with industry partners on
innovation to meet consumer needs, while also providing the solid nutrition
science and research that reinforces dairy’s role in the human diet.
“We know that developing dairy and dairy-based products that meet
consumer demand and that are good tasting with good functionality will, in
the end, mean more products introduced to market,” Miller says.
“Our National Dairy Foods Research Center program, a coordinated
unified research program, works through six research centers and three
applications labs to provide the fundamental science for innovation as well
as the applied research to address product challenges and bring new product
ideas to fruition.”

One of DMI’s priorities, Miller says, is
delivering new label-claim opportunities for whey protein, which has been
shown to be effective in muscle building and muscle maintenance.
“A structure-function claim could help a manufacturer better position
its whey protein-based nutrition bar or sports recovery beverage, thus
leading to greater sales and increased dairy consumption,” he says.
“On the product research side, we are looking at ways to process whey
protein to get a more consistent product, with good color and
functionality, for use as an ingredient. Another is developing a lowfat
cheese that meets regulatory requirements, tastes good and is
functional.”

Another key issue is nutrition profiling.
“Unfortunately, there is a trend toward labeling foods as either
‘good’ or ‘bad,’ often based on nutrient profiling
systems developed by many different groups or industries,” Miller
says. “This is leading to consumer confusion and misinformation. As
part of the Nutrient Rich Foods Coalition, we are supporting research to
develop a nutrient profiling system that takes a more balanced approach
through mathematical modeling, and that resonates with the public.

“We know that proper nutrition is balanced
nutrition — an individual’s diet should be about including
positive nutrients, not just avoiding negative nutrients. Under some
emerging profiling systems, diet sodas end up with a ‘good’
image because they have zero calories. The truth of the matter is that they
provide no nutritional value at all.”

Nutrient-rich dairy, on the other hand, is a very
important part of a healthy diet, Miller notes — a fact supported by
the recommendation in the U.S. Dietary Guidelines for Americans that people
consume three servings a day of lowfat or fat-free milk and milk products
for good health. “Dairy foods are an excellent source of nine
nutrients and supply nearly 75 percent of the calcium in the nation’s
food supply while accounting for less than 15 percent of the nation’s
supply of dietary fats,” he says. “Helping the food industry
take advantage of dairy foods’ nutrient package and ability to
enhance health is critical to the industry.”

Critical Outlook

Innovation is paramount to increasing sales of dairy
foods or ingredients, both in the United States and globally, Miller says.
“We believe there’s not enough supply to meet all the unmet
demand worldwide — and we are confident the U.S. dairy farmer will be
able to fill the gap between demand and supply,” he says. “By
increasing sales and consumption, we will improve the nutritional quality
of people’s diets, help manufacturers sell more products and increase
milk sales for dairy producers. Everybody wins.”

In the future, says Miller, the dairy industry is
going to look a lot more like the consumer packaged goods industry, and
innovation will play a key role in this transformation. “We are
focused on helping the industry innovate to meet the estimated 8 billion
pounds of unmet demand for U.S. dairy products by providing consumers what
they want, where and when they want it,” he says. “Dairy is
naturally nutrient rich, and in this nutrition- and health-focused
environment in the midst of an obesity crisis, dairy plays a vital role in
a healthy, well-balanced diet.”

Product Ingenuity

Clever dairy products are on the rise — DF takes a look at more
of what’s out there.

Londonderry, N.H.-based Stonyfield Farm has entered
the energy drink market with an alternative to the caffeine-fueled energy
drinks now crowding store shelves. Dairy-based Shift provides a sustainable
energy source with a combination of protein, vitamins, acai, and ginseng,
and doesn’t contain caffeine or guarana. That means Shift drinkers
have none of the negative side effects — among them rapid heart rate,
anxiety and gastrointestinal problems — associated with traditional
energy drinks, the company says. The cultured dairy drink is certified
organic — made with milk and other ingredients from organic farms
that pledge not to use antibiotics, hormones or toxic and persistent
pesticides and fertilizers; and is 100 percent natural, with no starches,
gelatin, preservatives, or artificial flavors or colors.

Nutri-Kids Nutrition-2-Go, from Life Science
Nutritionals Inc., Stoney Creek, Ontario, Canada., is a ready-to-drink milk
product fortified with healthy DHA omega-3 and fiber. Nutrition-2-go is low
in sugar, low in fat, fortified with Vitamins A, D and C, and is a great
source of calcium and protein. With 60 percent less sugar than other milk
drinks, Nutrition-2-go is fortified with life’s DHA from Martek
Biosciences. Varieties include Chocolate Chug and S-Berry Blast.

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